Friday, March 1, 2024

Latest Earnings Report: PepsiCo’s Mid-Single-Digit Growth in India | Business – Times of India

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PepsiCo has announced its latest earnings report revealing a robust mid-single-digit growth in the Indian market. Despite facing challenges in some regions, PepsiCo achieved a net revenue of $91.47 billion worldwide, marking a commendable 5.9% increase as per its latest earnings report.
In its report, PepsiCo highlighted the notable growth in developing and emerging markets, with both China and India contributing mid-single-digit growth figures.However, the company noted a decline of 4.64% in net revenue for the Africa, Middle East, and South Asia (AMESA) division, including India.
This decline was primarily attributed to adverse foreign exchange impacts, notably the depreciation of the Egyptian pound, alongside a net organic volume decrease, partially mitigated by effective net pricing strategies.
Despite the revenue challenges, PepsiCo observed positive trends in beverage unit volumes, which grew by 2% across the AMESA region, driven by significant growth in India and moderate growth in the Middle East.
However, the convenient foods unit experienced a decline of 3.5%, particularly affected by South Africa’s high-single-digit decline, offset to some extent by growth in the Middle East and Pakistan.
Furthermore, while PepsiCo reported a low-single-digit decline in India’s convenient foods unit volume, it noted 21% growth in operating profit across the AMESA region, indicating operational efficiency and strategic management.
In the December quarter, PepsiCo’s net revenue in AMESA declined by 3.72% to $1.93 billion.
‘We are confident that our businesses will perform well in 2024 in the context of changing marketplace conditions. Category growth rates are normalising as consumer behaviours largely revert to pre-pandemic norms and net revenue realisation moderates as inflationary pressures are expected to abate,” said Chairman and CEO Ramon Laguarta.

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